PI Poised for Breakout? Price Action Retests Key Support in Tight Range

Today Pi Coin (PI) dropped another 2% and right now it stands at $0.5795 as the token's circulating supply keeps growing.

Early adopters have found PI's performance rather unsatisfactory because the token dropped 80.6% after its all-time high in late February.

Since then, given PI's non-stop expansion of his circulating supply, selling pressure has been somewhat robust.

The token has clearly entered a period of stabilization, hence even with its current loss, a technical signal appears to be supporting a positive Pi coin price forecast.

Based on the Wyckoff Theory, a 90-year-old technical analysis method, PI could have entered a period of accumulation in which deep-pocketed investors secretly collect tokens in expectation of an approaching rally.

PI Retests Lower Bound of Its Consolidation System
Low volumes, range-bound prices, and low volatility among other indicators of an accumulation period define the price action.


Usually, accumulation stages are accompanied by a notable price increase when retail traders, fearing missing out (FOMO), perceive the price crossing important resistances.

As the chart illustrates, the top of the consolidation rectangle is somewhat close to the 200-day hourly EMA. This is the main obstacle to keep on eye as a bullish breakthrough might start the markup phase.

The price today is retesting the bottom limit of the rectangle—$0.5755. Should the price go below this support, the optimistic picture we discussed might be invalidated.

Should a bearish breakout develop, the market's next line of support most likely would be located around $0.5500.

If positive momentum picks up speed and FOMO comes in, a bullish breakthrough over $0.6100 might drive PI to $0.6600 first, therefore implying a 7% short-term gain or perhaps higher.

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